LendingClub Corporation (LC): A Bull Case Theory

We came across a bullish thesis on LendingClub Corporation on Shareholdersunite Essentials’s Substack by Shareholdersunite. In this article, we will summarize the bulls’ thesis on LC. LendingClub Corporation’s share was trading at $16.44 as of January 29th. LC’s trailing and forward P/E were 21.99 and 9.64 respectively according to Yahoo Finance.

LendingClub Corporation, operates as a bank holding company, that provides range of financial products and services in the United States. LC transformed by its 2021 acquisition of Radius Bank, now operates as a uniquely flexible hybrid of a digital bank and fintech marketplace, enabling it to originate, fund, sell, and service loans with far greater optionality than traditional lenders.

The company’s model centers on a seamless online origination platform powered by machine-learning underwriting and a rich data archive built from over $90 billion in facilitated loans. This fuels a vibrant investor marketplace—banks, insurers, asset managers, and funds—who buy whole loans and structured certificates seeking short-duration, attractive risk-adjusted yields.

At the same time, LC strategically retains high-quality prime loans on its balance sheet to generate recurring net interest income, increasingly important as the company pivots toward a more stable, bank-driven earnings profile. Its national bank charter further strengthens this evolution by lowering funding costs and expanding product potential beyond personal loans.

LC’s scale, technology, and underwriting dataset give it meaningful competitive advantages, while its customer-centric approach deepens loyalty through features like mobile-first engagement tools and its DebtIQ solution. Growth priorities revolve around expanding its member base—especially consumers refinancing expensive credit-card balances—broadening engagement, and building a wider suite of financial products.

The company also opportunistically acquires loan portfolios to deploy capital efficiently, as seen with its sizeable 2022 and 2024 purchases. While LC faces competitive pressure, regulatory burdens, and macro-sensitive origination cycles, its dual-engine revenue model—marketplace fees and net interest income—creates diversified earnings. Ultimately, the post-Radius shift toward balance-sheet lending, portfolio acquisitions, and recurring interest income positions LendingClub to deliver steadier, more predictable growth while retaining meaningful marketplace upside.

Previously, we covered a bullish thesis on Upstart Holdings, Inc. (UPST) by Unconventional Value in March 2025, which highlighted its AI-driven credit platform, iterative model improvements, and network effects. The company’s stock price has depreciated by approximately 25.14% since our coverage due to macro headwinds. The thesis still stands as Upstart’s AI enhancements support future growth. Shareholdersunite shares a similar perspective but emphasizes LendingClub’s dual bank and fintech model.

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Disclosure: None.